UK’s FTSE 100 touches near 7-month high

British equities jumped on Wednesday as investors cheered a surprise drop in domestic inflation, which spurred hopes that the Bank of England (BoE) could consider interest rate cuts early next year.

The blue-chip FTSE 100 (.FTSE) advanced 0.9% as of 0902 GMT, touching its highest level since May. 24 earlier in the session, outpacing the pan-European STOXX 600 (.STOXX), which was trading flat.

The pound dropped 0.5% after official data showed British inflation fell by more than any economist polled by Reuters predicted in November, pushing the headline rate to its lowest since September 2021.

Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.

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